Wednesday tips round-up: Great Portland, Spectris, De La Rue...

25th May 2011 06:36

Great Portland Estates's assets per share were up by 27% to 360p in the year to the end of March, driven by rental growth of 10.8%, or 15.9% for West End offices, although retail lagged at 3.7%. A feature of this year's reporting season has been strong results from Land Securities and British Land, but Great Portland has put them in the shade. The shares are not held for income, although total dividends were up from 8p to 8.2p. At 413p, up 3p last night, they are on a fully justified 15% premium to net assets and are a strong 'hold', says the Times.Spectris develops and markets productivity enhancing instrumentation and controls, and has a diverse end-user base with no single industry accounting for more than 10 per cent of its revenues. By being a provider of niche products into a range of industries, Spectris is well-placed to counter many of the challenges facing other industrial companies. With over £300m headroom on its balance sheet to finance acquisitions, the company has the firepower to consider smaller "bolt-ons" as well as more transformative deals, according to the Scotsman, which recommends a 'buy'.Banknote company De La Rue may have a licence to print money, but after a volatile 12 months the shares have not been quite such a sure thing. The group released its full-year results yesterday with pre-tax profits beating analysts' expectations, up 10% to £33m. The dividend was maintained, which should have calmed a few nerves among investors after what has been a trying year. As well as Oberthur still lurking with the possibility of another bid, there is the recovery strategy and "an encouraging order-book profile and a good pipeline of opportunities", according to new chief executive Tom Cobbold. Add the nice 5.1% yield, and we think this one might finally be worth buying into, says the Independent.In what has been a terrible year since its demerger from the old Cable & Wireless empire, with two profit warnings and dire fears over the sustainability of the dividend, C&W Worldwide could at least emerge the year to the end of March with one tangible sign of progress. The company, which provides telecoms to business, did manage to generate £61m of cash against a £1m outflow last time, even if this was not enough to cover that dividend. C&W Worldwide is giving clear guidance on what to expect this year and confirming that the 4.5p annual dividend will be maintained until it is covered by free cashflow. But the payout gives the certainty of a near-9% yield at last night's 52p price, pretty well the only reason to 'hold' the shares, recommends the Times.Holidaybreak, the education and activity travel group, was a popular destination for investors yesterday, despite its first-half losses widening. Shares took off, in part because of a strong pipeline of bookings at its PGL outdoor activity business for schoolchildren. Investors also saluted Holidaybreak's bullishness on the growth potential of Meininger, the Germany-based student tour accommodation group, in which it took a 50% stake last year for £30.8m. Moreover, Holidaybreak now trades on a forward earnings ratio of under seven times, which now looks attractive. While the holiday sector is a risky one and subject to major external turbulence, we think that Holidaybreak is worth a punt. 'Buy', says the Independent.--->BCPlease note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.